The investment objective of the scheme would be to achieve growth of capital through investments made in a basket of fixed income securities maturing on or before the maturity of the scheme. The tenor of the scheme is three months.

The new issue opens on 24th February and closes on 28th February. The minimum investment amount is Rs5,000.

CRISIL Liquid Fund Index is the benchmark index. Alok Singh is the fund manager of the scheme.

Birla Sun Life Mutual Fund has launched Birla Sun Life Short Term FMP-Series 9, a close-ended income scheme.

The scheme seeks to generate income by investing in a portfolio of fixed income securities maturing on or before the duration of the scheme. The scheme will have duration of 180 days from the date of allotment.

The new issue opens on 24th February and closes on the same day. The minimum investment amount is Rs5,000.

CRISIL Short Term Bond Fund Index is the benchmark index. Kaustubh Gupta would be the fund manager of the scheme.

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Like others, Bajaj Allianz has launched Cash Rich, a money back insurance policy. The returns will be meagre—in line with traditional plans, unless the bonus is substantial

Bajaj Allianz has launched its Cash Rich traditional plan for the conservative investor. Life insurance companies are launching new traditional plans with the business shifting away from unit-linked insurance plans (ULIPs). The returns will be in line with other traditional plans, unless there is substantial bonus given under three categories of vested bonus at the end of the premium payment term (PPT); non-guaranteed cash bonus given each year in the cash-back period and the terminal bonus.

The returns have to be looked with perspective that the policy offers life insurance and covers the risk of death.

In case of the unfortunate demise of policyholder during the PPT and provided that all due premiums have been paid, Bajaj Allianz will pay the sum assured plus the applicable bonuses to the nominee. If the death is during the cash-back period, the nominee will get the sum assured, the interim cash bonus (if any) and the terminal bonus (if any).

The risk coverage is meaningful for the policyholder during the PPT, as the fund value after PPT will be enough to pay the sum assured if the policyholder expires during the cash-back period.

Moneylife calculated the premium for a 30-year-old male, for a sum assured of Rs10 lakh, PPT of 10 years, cash-back period of 10 years and a policy term of 20 years.

The yearly premium (including taxes) will be Rs1,12,831 to be paid over 10 years. The total premium payment will be Rs11,28,310. The vested bonus at end of the PPT is unknown, but as per IRDA (the Insurance Regulatory and Development Authority) guidelines of @6% and @10% p.a., the bonus is Rs2,18,994 and Rs4,10,599, respectively.

During the cash-back period (years 11 to 20), the company will give guaranteed 5% of the sum assured. In this case, it will be Rs50,000. The non-guaranteed cash bonus (@1% of sum assured) shown by the company is Rs10,000 for the above example. On maturity, the policyholder gets a sum assured of Rs10 lakh and terminal bonus (if any).

Under the best circumstances, if the investor pays Rs11,28,310 in 10 years, he receives a vested bonus at the end of the PPT of Rs4,10,599 (i.e., 10%). In this example, the yearly cash back was Rs60,000 (including non-guaranteed cash bonus @1% of sum assured) and Rs10 lakh at the end of the policy term of 20 years.

The historical terminal bonus in the industry has been Rs40 per Rs1,000 of the sum assured. It works out to Rs40,000 paid in Year 20. The IRR (internal rate of return) for the investor will be 5.5%. The product is covering life insurance-and hence, part of the premium that you pay, goes for covering the risk.

For insurance cover of Rs.10Lac,there is a monthly premium of Rs.10,155.in cashplan.
And to take pure cover of Rs.10Lac for 20 yrs,monthly premium payable is Rs.960.

Mr.A have decided to invest in combination of RD and term insurance.
So premium payable to term insurance=Rs.960 pm.
Amount diverted to RD=10155(Toal premium paid in cash plan) – 960(Term Insuramce premium) = Rs.9195.

Current rate of rd:8% p.a.
Since interest is taxable,effective rate of interest becomes : suppose 7%.
RD term = 10 yrs.=PPT term of Mr B
Capital becomes : 1,597,187.
As total Policy term is of 20 yrs,he has till 10 yrs and he invested in Fixed deposits.
FD rate 9%.Suppose after post tax returns :8%.
After 10 yrs,FD amount becomes: 3,526,652.

So A Get back Rs. 3,526,652 after 10 yrs,,with enjoying cover of Rs.10Lac and happiness of paying tax.

Now consider B has invested Cash Rich plan per month Rs.10,155 with SA 10 L.
Now we consider at a rate of 10% bonus he receives bonus of Rs.:4,10,600.after 10 yrs.

Now he invested this amount in fixed deposit for 10 yrs.
On matuturity receivable is:9,06,620.

Now he will receive Rs.60,000 per year consider he invested this amount in FDs as soon as he receives it for respective term till completion of 20 yrs.
Overall calculation shows he will reciive just below Rs.10Lac considering rate as same of Mr A.

And also he will receive Rs.10Lac as initial sum assured.
.
Total amount of B becomes :9,06,620 + 1000000 +100000=Aprx.29Lac…

Thus though we give more calculation benefits to cash plan such as considering as low as RD returns of 7% (SIP can give at least 10% returns with free capital gain),,consider cash plan bonus with 10% rate which is simply difficult….Thenafter also CASH Plan well far from SIP + Term Insurance Combination..so investor to decide ,,,whether to invest in term plans or EyeWasher moneyback ,, Endowment or Term insurance Plans.